Reserve Bank of India Governor Sanjay Malhotra clarified on Wednesday that no proposal to impose any fees on UPI transactions is currently under consideration. He also stated that the RBI is considering a proposal to allow banks to remotely lock mobile phones purchased on credit if a customer fails to pay EMIs.
When asked whether there are plans to impose fees on UPI transactions, he categorically stated that no such plan is currently on the table. He made this comment during a press conference following the monetary policy announcement.
Regarding the plan to digitally lock mobile phones purchased on credit, the Governor stated that the matter is under consideration. Deputy Governor M. Rajeshwar Rao stated that the proposal is being studied, weighing both its pros and cons. He added that the issue requires striking a balance between customer rights, data privacy, and lenders’ needs, and therefore, it is being carefully considered and a decision will be taken at the appropriate time.
During the press conference, the Governor and other Deputy Governors also answered media questions about a possible interest rate cut, the rupee’s decline, and other economic issues. Regarding interest rates, Malhotra stated that inflation has declined significantly, raising the possibility of some monetary policy easing.
Regarding the rupee’s decline against the dollar, he stated that the RBI does not target any specific level, but rather seeks to prevent unnecessary market volatility.
He also expressed confidence that India’s rapid economic growth rate will continue, price stability will be maintained, and private investment will also increase.
He stated that given the improved economic performance in the first half, the RBI has raised its GDP growth forecast for the current fiscal year 2025-26 from 6.5% to 6.8%.
